Council tax after repossession help!

sarahlouise1979

Hi,
Not bee on here for a while, but had loads of help from this forum when I went bankrupt last year- thank you!

My current problem involves council tax on my repossessed property.
I stopped paying the mortgage in December 2011 and moved out of the property in February 2012, informing the council of this and they put the property on the standard 6 month empty property exemption thingy.

I was told by National Debtline not to bother with handing my keys to the lender as they'd probably try and get me to sign a DoA, and was advised to just let the property be repossessed. As I hadn't paid my mortgage since December 2011, I assumed that it would be repossessed before the 6 month council tax exemption ran out.

I went bankrupt in June 2012, the property was listed on my bankruptcy SOA.

I have just received a letter fro. The council saying that I owe them £800 council tax for the period 3rd August 2012 (when the exemption ran out) to 22nd April 2013 (which is apparently when the flat was repossessed!!!)

My question is, how is that fair????!! I didn't know until I received this letter that the flat had only just been repossessed- some 16 months after I stopped paying the mortgage!! If I'd gone ahead and signed the DoA and handed my keys to the bank when I moved out in the February, I'd have had some kind of proof that I'd let it be repossessed, but as it happens I have none :-(

Any ideas what I can do next????

Thanks

CIS

My question is, how is that fair????!! I

Legislation isn't fair. From what you have said the council have followed legislation correctly with regards to the Class L exemption.

You need to contact them to discuss the outstanding balance.

debt_doctor

I would tend to doubt whether the council would accept handing the keys back as the 'property was in the possession of the lender' and more inclined to await the official County Court ruling.
Just my thoughts, I would be interested to hear CIS's thoughts on the issue.

DD

Overstretched

Can the owed council tax not be included in the bankruptcy? Just interested as we are planning to leave our home and rent and doubt the OR will allow two lots of council tax as reasonable expense.

debt_doctor

Overstretched wrote: »

Can the owed council tax not be included in the bankruptcy? Just interested as we are planning to leave our home and rent and doubt the OR will allow two lots of council tax as reasonable expense.

Hi,
If you are liable for two amounts of council tax then that is a perfectly legitimate expense to be included in any IPA calculation.

DD

luvchocolate

Hi as the council tax bill is for the period after your br it cannot be included only debts
before br will be included. The council will bill you for the period before it is legally repossessed after any exception. As said tho 2 lots of council tax are allowed by the or as legitimate expenses. Its awkward as you need to get your rental property sorted before br if possible but then we are are left with the council tax, you will get there ....keep moving forward x

sarahlouise1979

I've found on the council website, a list of the reasons for council tax exemption. Class 'Q' states a property 'left empty by a bankrupt' as being exempt. Seeing as I went bankrupt before the 6 month empty property exemption expired, should that stop me from being liable for the charges??

luvchocolate

I would give them a call and ask....you may have done this today, if so sorry for late reply.
Why do these things always happen on a weekend!! Good luck x

sarahlouise1979

Aghhh!

So the council have emailed me back saying that because my liability for this property and charge therein did not start until
3rd of August when the relevant exemption ran out it will not be covered by the Bankruptcy itself...

So they are saying that, because I no longer live in the property they would be happy to accept £50 a month from me. Problem is, this is impossible as I've just had agreement from moonbeever/ the OR that my IPA has been suspended due to me being on maternity leave and having literally NO spare money. So where am I supposed to magic this £50 a month from??

Help please!